HomeMy WebLinkAbout1999-11-17 Min - Board __. ._.... ............ _ _ _
REGULAR MEETING
November 17, 1999
In accordance with District Code Section 2.08.010 the TDPUD minutes are action only minutes
All Board meetings are recorded on audio tapes which are preserved perpetually and made
available for listening to any interested party upon their request
The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was
called to order at 7:06 PM in the TDPUD Board Room by President Jones.
ROLL CALL: Directors Joe Aguera, Ron Hemig, Bob Jones, Jim Maass and Pat Sutton were
present.
EMPLOYEES PRESENT: Mary Chapman, Alan Harry, Steve Hollabaugh, Peter Holzmeister,
Kathy Neus, Bob Quinn, Ed Taylor and Scott Terrell.
CONSULTANTS PRESENT: Counsel Steve Gross.
OTHERS PRESENT: There were no others present in the audience.
PUBLIC INPUT: There was no public input.
PRESENTATION OF DRAFT BUDGET FOR 2000
Manager Holzmeister reminded the Board that the draft 2000 budget has a slightly revised
format due to the computer conversion. It proposes no electric rate change and a 5% water rate
increase. Operations are essentially unchanged. Some capital items are not included. He
reviewed with the Board major cost items and capital items in both the electric and water
departments. Water capital items not included in the budget are a master plan update; Tahoe
Donner pipeline replacement in 2000; Tahoe Donner pipeline replacement in future years;
storage yard and maintenance facility. Opportunities for financing these items are rate
increases, lease of conduit, sale of land and a new business unit. Discussion ensued and
questions were answered by staff. A copy of the draft budget presentation has been attached to
these minutes for reference.
PRESENTATION OF DRAFT TELECOMMUNICATIONS BUSINESS PLAN
The Board packet included the telecommunications business plan prepared by Marty Skeer of
Navigant Consulting and District staff. A copy of the plan as well as the overhead presentation
pages are attached for reference.
Staff advised that the telecommunications process is on track and the business unit will
succeed. It will generate substantial support for the water and electric business units. The
business plan evolved to include CATV.
The business plan evaluates costs and revenues of variety of services and makes a strong
financial case for proceeding. The cost to create the business unit is $5.8M ($5,000,000
financed by COP and $800,000 contributed from District funds. There will be a loss for two
years, then a positive cash flow ($157,000 in year three up to $2,347,000 in year 15).
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Discussion was held and the following questions were raised. Answers will be brought back to
the Board.
1. Does Telecomm work without CATV?
2. Could we do a survey of customer demand?
3. What is the cost to construct overhead where the Williams conduit is in place?
Compare to use of conduit.
4. Can Telecomm profits be used to support water and electric systems?
5. What are the potential glitches in the Business Plan?
6. What is the skill set we need for Telecomm technical staff, and can we find them
in Truckee?
7. Does the community want a governmental agency (TDPUD) to compete with
private business (USA Media)?
8. Can the District get someone to lend us the money for Telecomm, plus that
needed for water lines?
9. How can Telecomm profits be folded into electric and water revenues (capital,
rates operations)? Will bonding companies look at Telecomm revenues as a
positive thing?
10. Verify when TDPUD went into water business.
11. Staff has reviewed numerous District documents and has not as yet found the
date on which the District entered into the business of providing water to Truckee
residents.
12. Who, if anyone, has recently bought out Williams Communications?
13. Where is Navigant headquartered?
14. Report on TDPUD SCADA system — and what is our plan — does it need to be a
whole new system? (reliability, productivity)
MONTHLY STAFF REPORTS
There were no questions regarding the staff reports. Copies are attached.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned At 9:50 PM.
TRU,C�EE,DDNNER PUOLiiC UTILITY DISTRICT
.R n Hemig, Presi gent f
Prepared bye
Susan M. Craig, Deputy District Clerk
smc
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